Indiabulls Financial Services (IBFSL) informed us that it will issue over 2.56 crore equity shares to the shareholders of Indiabulls Credit Services (ICSL) pursuant to its scheme of restructuring. The company received Delhi High Court’s approval for restructuring its existing business, entailing the merger of Indiabulls Credit Services (ICSL) with itself and the demerger of Indiabulls Securities (ISL).
Indiabulls Credit Services (ICSL) is engaged in the consumer finance business. Indiabulls Securities (ISL), provides brokerage including equities, wholesale debt, futures and options, depository services, research services, mutual funds and initial public offer distribution to its clients.
Through the scheme of arrangement, ICSL will get amalgamated with IBFSL. IBFSL will issue 3 equity shares of Rs 2 each for every 10 equity shares of Rs 10 each held by the shareholders of ICSL. Meanwhile, ISL will issue 1 equity share of Rs 2 each for each share of Rs 2 each held in IBFSL.
Consequent to this restructuring exercise, the paid-up equity capital of Indiabulls Financial Services will increase to Rs 50.68 crore from the present Rs 45.55 crore.